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French Prime Minister spoke Thursday the necessary economic and social convergence between France and Germany, which will notament a common retirement age. Now it has to go to 67 across the Rhine. Prime Minister Francois Fillon presented Thursday, June 16 at the Small Business Congress in Paris a series of measures designed to "grow" these companies

Prime Minister Francois Fillon said on Thursday it would move to a retirement age of communication between France and Germany, where the legal age of retirement has to go in the coming years from 65 to 67 years . Referring to the "convergence" between the two countries tax the Prime Minister came out of his speech Thursday at the awards ceremony of the creative audacity to Matignon to engage in a plea for a reconciliation of working hours and the age of retirement between the two countries.

"It will take time to go to a joint work, we must move towards a common retirement age, it will move towards a gradual convergence of economic and social organization in both countries because it is the key to survival and the development of the euro area and the European continent, "warned Mr Fillon, without elaborating.

The retirement age in Germany will rise gradually from 65 to 67 years under a reform passed in 2007 and intended to prevent the collapse of a system challenged by life expectancy and an ever-growing shrinking of the workforce. The decline in retirement age will, however, very gradually, reaching actually 67 years around 2030.

French pension reform, enacted in June 2011, provides a decline of 60 to 62 the legal age of retirement.

5500 communities and public institutions are still contaminated with highly volatile lending rates, which could cost them up to 3.9 billion euros. The key points of the problem. The bank Dexia had sold 25 billion euros in loans structured to 5500 clients. Complex mechanisms and uncontrollable

The toxic loans are loans that have a hand-indexed floating rate indices extremely volatile, likely to cause a spike in interest rates. Some loans are indexed to such an exchange rate of foreign currencies. According to their variations, interest may pounce. Release cites the case of municipalities that have seen interest rates rise to 10 or 15% this summer because of rising Swiss franc, their credits are indexed to such currency. However, some loans are still running until 2025 or 2030.The low cost of borrowing in the early years convinced the financial services community, who thought to save money without receiving the opacity and complexity of products.

Read about: Local authorities caught up toxic loans

5500 communities and institutions concerned

Liberation published on Wednesday a confidential document from the bank Dexia Credit Local (DCL), which amounts to 5500 the number of local authorities and public institutions which have made French toxic loans between 1995 and 2009. In total, the bank would have distributed 25 billion euros for these clients.Or "as estimated by the bank, the additional cost of these loans was estimated at 3.9 billion euros at the end of 2009," wrote Liberation, "which means that communities should pay a penalty of this order" .

Libération.fr provides a map of France infected bodies, municipalities, regions, departments all political stripes combined. Antibes, for example, has borrowed 60 million euros. It must repay 21 million extra. In Rouen, the risky loans represent 53% of the debt, for a total of 162 million euros.The city has already been provisioned 500,000 euros in 2009 and 1 million in 2010 to cope with soaring interest rates of its loans.

Read about: Local authorities still mired in the toxic loans

The HLM also contaminated

As local authorities, social landlords have contracted toxic financial products before the outbreak of the banking crisis. Exposure to risk financial products could reach 50% for a dozen of them.

Read about: What you should know about the crisis of public housing

The toxic loans account for 8% of the debt of public housing

Dexia in its sights

In a report published in 2009, the Court of Auditors has confirmed the responsibility of banks, which provide "information over-optimistic or even wrong, to borrowers, guaranteeing them virtually no risk."Among them, the Dexia Group, the first local lender. In 2008 and 2009, its share in domestic credit has also plunged by 40, then 20%. Are also singled out the savings banks, Credit Agricole and Societe Generale. But the Court of Auditors also accused local authorities, who have adopted "a speculative approach" by borrowing structured.

Read about: Credits toxic local irrational, greedy banks

A double threat to taxpayers

Adding salt may be administered for. Exponential to pay the interest, communities can cut back on investment and substantially increase local taxes."The rise of the Swiss franc is a college at least for the Seine-Saint-Denis", says the chairman of the General Council of Seine-Saint-Denis, Claude Bartolone, in Libération.

Read about: The tricks of the departments to make ends meet

"The financial department is dramatic"

Legal action

From 2009, Saint-Etienne was the first city to announce its intention to assign the Deutsche Bank before the Tribunal de Grande Instance in Paris to set aside 20 million euros of toxic loans. In February, Claude Bartolone has also filed a complaint against the bank Depfa, Dexia and Caylon, hoping to overturn the 63 risky loans taken out between 1997 and 2008. He had already assigned Natixis in 2009.Other procedures, initiated by municipalities, are under way.

Read about: Borrowing toxic Seine-Saint-Denis attack three banks

Toxic loans: the politicians do block against banks

Claude Bartolone accuses Dexia "scam"

Some changes since 2008

In the months that followed the discovery of toxic loans in 2008, the government initially tried to minimize. The charter of good conduct promised at the time of the crisis has emerged in January 2010: it forbids banks to offer loans to local governments whose interest rate changes based on indices high risk. In practice, this rules out any link with commodity prices and equity markets.For their part, communities agree to more transparency on their debts and loans.

Tuesday, communities have come to begin the process that should lead to a funding agency dedicated to local investment, without automatic recourse to the banks. It could be operational in 2012 and would cover, in ten years, a quarter of loans to local market, which totals 20 billion euros. A bill will be tabled in Parliament with a view to its adoption before the end of the year.

European shares opened slightly lower Tuesday, extending the trend of the previous day, while Standard & Poor's lowered its credit ratings on Italy, where the market nervous, fearing a lack of Greece.

Banks are again in the first line, after a report in the Financial Times that the German group Siemens withdrew 500 million euros in a major French bank to transfer them to the European Central Bank (ECB) two weeks ago .

At 9:07, the CAC 40 index down 0.33% to 2930.23 points.

The London Stock Exchange lost 0.47%, 0.22% Frankfurt and Milan 1.05%.

The Euro Stoxx 50 was down 0.27%.

The government announced Wednesday the introduction of a windfall tax on higher income from a battery of measures to ensure deficit reduction despite economic growth less vigorous than expected.

Prime Minister Francois Fillon spoke at a press conference an outstanding contribution of 3% on income tax reference above 500,000 euros.

He also announced a further step to reduce tax loopholes in the 2012 budget, an increase in tobacco taxes (6%) and alcohol and the inclusion of overtime in the calculation of general relief of charges.

The measures announced will yield one billion euros in 2011 and 11 billion in 2012, he said.

The Justice Department considers the requirements for rating mortgage products related to the crisis "subprime". This investigation was launched before the rating is downgraded by S & P U.S. The rating agency Standard & Poor's has lowered a notch Friday, August 5 sovereign rating of the United States, from "AAA" to "AA +".

The U.S. Justice Department is investigating about the view that Standard & Poor's focused on asset-backed mortgages whose collapse led to the 2008-2009 financial crisis, said Thursday night a source close to the .

Investigation launched by the deterioration of the American note

The survey – which according to the source is trying to distinguish between what the S & P analysts wanted to do and what they were told to do – was launched before the rating downgrade does the United States at the beginning months.

The Justice Department has also conducted a survey of Moody's, one of two main competing S & P on the notes she had assigned to structured products during the crisis, said another source. Asked by Reuters by telephone and e-mail, a spokesman for Moody's could not be reached immediately.

The Securities & Exchange Commission (SEC), Constable of U.S. financial markets, has also opened an investigation into the possible role of S & P, a division of McGraw-Hill, in the crisis, said the first source.Representatives of the SEC and Justice Department have declined comment.

Notes biased on subprime loans?

The New York Times had first reported the investigation of S & P focused on whether the agency had assigned the notes to dozens of biased asset-backed home loans before the financial crisis broke out in 2008. The Justice Department was interested in cases where S & P analysts want to assign notes to some of these assets before being contradicted by leaders of the agency, said the daily.

A spokesman for S & P noted that among the principles guiding the action of the particular agency were "analytical independence and objectivity", adding that the company had taken steps to strengthen the implementation of these principles ."In recent years, S & P has received several requests from various government authorities regarding asset-backed U.S. mortgage. We have cooperated and continue to do so," said the spokesman.

It is currently unclear whether Fitch (Fimalac group), the third major rating agency, is also being investigated by the Justice Department. Neither Moody's or Fitch have lowered their ratings on the United States.

With Reuters.

Most Gulf stock markets have closed lower Sunday, both penalized by the lowering by Standard & Poor's rating of the U.S. and the new onset of fever on the forehead of the debt of countries in the euro area.

S & P on Friday denied the United States in their triple A, lowering the rating of sovereign debt to AA +, sowing panic among investors.

Saudi Stock Exchange, the largest in the Arab world, has faltered on Saturday, falling from 5.5% to a low of five months before showing a small increase of 0.08% at the end of Sunday.

In Oman, the main index lost 1.9% to a low of two years, while Bahrain has given up 0.33% and that of Abu Dhabi has dropped 2.5%.

A Kuwait City Stock Exchange fell by 1.6%.In Qatar, it was down 2.5%.

But it was in Tel Aviv that the decline was most pronounced with a fall of 6.99% recorded by the TA-25 index in Israel. The TA-100, wider, has meanwhile shrunk by 7.2%.

He also had to wait nearly an hour to attend the first exchanges in the financial center of Israel, the circuit breaker having switched on while the stock market already lost more than 5% in pre-market.

Israeli investors are concerned that the U.S. debt crisis is out of control and then it is translated by a dive into recession the world's largest economy, said Zach Herzog Psagot Brokerage.

"The Israeli economy will not put a dive of the United States into recession.We are dependent on exports of goods and services, "he told Reuters, noting that exports account for 45% of the GDP of Israel and for two-thirds they go to the United States and Europe.

Faurecia has identified its goals Tuesday in 2011 after a first half marked by strong growth as the automotive supplier will maintain the second half through its investments outside Europe and in countries at low cost.

The specialist for exhaust systems and car seats, including the manufacturer PSA owns 57.4%, achieved a consolidated turnover of 8.15 billion euros in the first six months of the year, a up 19.4%.At constant scope and exchange rates – it has gained particular outside the specialist German automotive Plastal – the growth was 15.5%.

Faurecia's operating profit rose 57% to 340 million, giving a margin of 4.2% against 3.2% a year earlier, and net income, group share, increased by 82% to 185.8 million euros.

"With the strong growth recorded by the group in the first half and improved profitability (…), Faurecia is now a year ahead of its business plan 2010-2014 presented in June 2010," said the equipment in a statement."Growth should remain strong in the second half in all regions and medium term supported by a high level of acquisition of new programs."

In a presentation to analysts, Faurecia said to expect in 2011 a new record in terms of new contracts expected between 13 and 14 billion euros against 13.1 billion in 2010.

The group also raised to 450 million its investment objective for this year, against an initial assumption of 350 million.On behalf of the profitability and international expansion, priority is given to low cost countries, where investments will increase by 89% against 16% for countries where the cost base is higher.

Faurecia has 42 industrial projects under way, eight in Central America and the North – including five in Mexico – twelve in the European area – including nine in Eastern Europe, Russia and Turkey – and twelve in China.

ONE YEAR AHEAD OF PLAN

As part of its strategic plan in the medium term, the equipment is a turnover of 16 billion euros by 2014, driven by an expected average annual growth of 12%, 8% organic growth.Faurecia is also an operating margin of 4 to 4.5% in 2012 and then 5 to 6% in 2014.

In June 2010, he had also set a goal of doubling the share of sales outside Europe makes it to 42% within five years, against 23% in 2009.In the first half, the share of sales – excluding monoliths for catalytic converters that Faurecia bought out – carried out in Europe reached 34%.

For the year, the Group has revised upwards its target of consolidated net sales to 15.7 to 15.9 billion euros, against 14.8 to 15.3 billion expected so far, an increase from 13.8% to 15.2% compared to 2010, and refined to increase its target for operating profit to 620-650 million euros, against a previous range of 580-640 million.

"The results are in line with consensus," said JP Morgan Cazenove in a note."The forecast EBIT is revised up slightly, but remains in line with consensus, while the increase in capex reduced cash flow prospects."

Faurecia has revised down to 100 million euros its forecast net cash flow in 2011, against 200 million euros expected so far.

The action Faurecia closed Monday at the Paris Stock Exchange to 30.34 euros, giving a market capitalization of around 3.2 billion euros. Since the beginning of the year, the stock jumped 40%.

According to Bercy, the index of the quality of care in the state services has been improving by three points in the second quarter. The overall index of satisfaction of users reaches 81%. Event officials in Paris in January 2009.

The quality of public services is improving, with an index up slightly to 81% (1% compared to March 2011), as the third barometer made by the Department of Budget and released Monday. The general revision of public policies (RGPP), resulting in the non-replacement of an official two retiring, aims to improve the quality of services. To evaluate this, indicators have been established in hundreds of services and users from 3000 to measure the reception, processing of service and claims processing.

According to Bercy, the index of the quality of care in the state services has been improving by three points to 57% (against 54% in March 2011). However, it is down sharply for replies to emails within five working days to 49% (-11 points), for referral to the right service to 62% (-7) or responses to a phone call least five rings in 77% (-3). For treatment approaches, the university and employment center are good students: 61% of first vows satisfied (17%) in the direction of the university, and 95.5% (+9.5%) unemployed compensation within 15 days.

The process to obtain a passport in less than two weeks (91%) or housing assistance within 15 days (83%) increased by one point over March 2011.Eight other indicators remain stable: 77% of patients (to a target rate of 80%) are covered in less than four hours emergencies, the average response time of police in case of attack is 13 minutes, 85% of people retiring received a record of career fair.

Applications for correction to tax are satisfied, 95% a month to month and the average time for reimbursement of care leaves by social security remained stable (3.3 days per mail, 10 days for paper).

The possibility of a default part of Greece, triggered by a redemption or exchange of debt securities, is at the heart of discussions between leaders of the euro area in Brussels, where a summit decisive for the future of the single currency s is open.

According to a draft statement obtained by Reuters, the 17 Heads of State and Government also advanced to an overhaul of the fund to support the euro area (EFSF) to enable it to act preventively, to recapitalize banks or buy bonds on the secondary market to stop the contagion.

In preparation for this summit, German Chancellor Angela Merkel and French President Nicolas Sarkozy Wednesday identified a common position on a new bailout Greek, which includes private sector, after seven hours of talks "very tight, "according to members of the French delegation.

Angela Merkel and Nicolas Sarkozy have called mid-term to Jean-Claude Trichet to join them in Frankfurt, suggesting that the compromise has the support of the President of the European Central Bank.

Several diplomatic sources said that if the question of a defect Greek – very short – is not fully resolved, the principle is accepted by all.

"It will not be made clear but it will be induced by the measures to be presented in the final declaration," said a source following the talks.

For its part, the Dutch Finance Minister Jan Kees de Jager, told his parliament that this possibility was not excluded.

"The demand to avoid a default selection is no longer on the table.We can continue on the path of a banking plan, which remains confidential, "he said.

REDEMPTION OF BONDS

According to the draft final statement, the fund will support euro area could now be used by countries in need loans of up to 15 years and at rates of about 3.5%, against seven and a half years and between 4.5 and 5.8% today.

It could also lend money to proactively country through a crisis of liquidity and recapitalize banks via loans to governments, even if they do not have a plan to help the EU and the Fund International Monetary Fund (IMF).

Finally, it could also be involved in the secondary market, provided that the European Central Bank does not declare an "emergency situation".

All these measures were presented for the first time in the spring but Germany had blocked when considering that they went too far.

The IMF, which is represented in Brussels by its new CEO Christine Lagarde, has previously recommended to the leaders of the euro area to replenish the EFSF and make it more flexible.

This redesign, however, require an amendment to the articles of EFSF and ratification by national parliaments, and could take several months.

It is also not clear whether the Permanent Mechanism for stability (MES), which will follow the EFSF July 1, 2013, will also perform these operations.

NO TAX CREDIT

According to several sources, the option to buy back Greek bond at a discount to face value is favored over an exchange or a "rollover" of bonds as it would greatly reduce the total amount of government debt, which is around 350 billion euros.

The new aid plan in Athens, which should amount to some 115 billion euros, against 110 billion for the first, will include participation estimated at 30 billion euros from the private sector.

The modalities of this participation of the banks had to be a presentation of Baudouin Prot, BNP Paribas – the bank most exposed to French Greek debt – and Josef Ackermann, chief executive of Deutsche Bank and the Institute of International Finance (IIF), which represents banks.

However, the solution of taxing the banking sector, which the banks were strongly opposed because they felt it unfair to those of them who are not exposed to the Greek debt was excluded.

The euro rose Thursday morning after having returned and was finally up sharply in the afternoon, boosted by the prospect of an agreement.

European shares have resumed their so-early in the afternoon after playing on a hesitant note before.

In the bond market, the yield spread between German debt – seen as a safe haven investment – and the debt of peripheral countries in the euro area has narrowed.

The heads of state and government agreed Friday to appoint Mario Draghi as President of the European Central Bank from 1 November 2011, announced the European Council president, Herman Van Rompuy.

"The European Council has just agreed on the appointment of Mario Draghi as the next President of the European Central Bank," said Herman Van Rompuy in a message posted on Twitter, confirming information from diplomats.

The current governor of the Bank of Italy, aged 63, will succeed to Jean-Claude Trichet, who will leave his post in late October after eight years at the head of the institution.